InDebted to help with stressful traditional debt collecting in the UK

Consumer polling of over 2,000 UK adults, conducted by Opinium, reveals the extent of the negative experiences suffered by those who have fallen into debt. One in three UK adults (34%) who previously or currently have debts say they’ve been contacted by debt collectors. 64% of those who have interacted with debt collectors said the experience was ‘stressful’, a figure which rises to 74% among 18–34-year-olds. Overall, 2 in 5 stated their experience with collectors was negative. Staggeringly, half (49%) who have dealt with debt collection agencies encountered harassment or aggression, with 53% made to feel ashamed to be in debt.

Rather than supporting people to get on top of their debt, this treatment has exacerbated their financial position and led to poorer consumer outcomes. Over half (56%) of respondents who had previously worked with an existing UK debt collection agency said the experience had made it more difficult to resolve their debt. 

As well as reporting clear issues with treatment from the UK’s debt collection agencies, part of the problem is how those in debt are communicated with. 52% of respondents who had currently or previously been in debt said they had been contacted by debt collectors using traditional non-digital methods, including sending letters (24%), making phone calls (20%), and bailiffs visiting their home (8%). In contrast, when asked, digital contact was the preferred option for over half (51%) of customers.

Consumer dissatisfaction with outdated debt collection tactics is increasingly concerning as consumers face growing financial pressures. 38% of Brits surveyed by InDebted are worried about increasing their debts or going into debt in 2022 amid cost-of-living struggles. This comes off the back of recent data from The Bank of England showing an acceleration in consumer spending on credit cards as inflation rises. This research evidences that industry change is vital, and a new solution to debt collection is required to better support UK consumers.

InDebted’s UK launch follows a successful period operating in Beta after being granted FCA authorisation in August 2021. InDebted aims to change the world of consumer debt recovery for good, transforming the global debt collection industry by supporting the overall financial wellbeing of consumers with an intelligent, digital-first, and empathetic solution to debt collection. 

Rather than relying on tactics such as phone calls and sending legal letters to contact customers, InDebted uses digital channels such as SMS and email. InDebted’s data science models learn and improve based on every customer interaction, informing how to connect with people through the channel they prefer, with the right message, at a time that’s convenient for them. Customers are then able to choose how they want to manage their debt via their self-serve digital portal, with several flexible options. InDebted also has a global 24/7 support team available to assist customers across all channels.